What to Look for in a Financial Advisor

There is no shortage of financial advisors in the United States. From digital platforms offering robo-advisors to brick and mortar companies providing traditional financial advice, the industry gives you plenty of advisors to choose from. With so many options, it may seem difficult to pick the right one. However, if you follow a few simple steps, you canfind the right advisor to meet your financial goals.

Outline Financial Needs

Beforechoosing a financial consultant, you should first consider whether you need one. If you just want to save a few dollars after each paycheck, you probably do not need an expert. If you want to save a sizable portion of your annual income, but have no idea where to start, you should start your search for a financial planner.

Types of Advisors

Before you start searching, you should know a little about the advisors currently available. Not long ago, financial experts were reserved only for the ultra-rich. Today, the digital era has completely changed how people manage their money. For example, you can use a digital platform to invest your money on the advice of computer algorithms. Known as robo-advisors, these low-cost investment platforms build financial portfolios using the answers to a few simple questions.

Virtual Financial Platforms

One rung higher than robo-advisors are digital platforms offering online financial planning using a combination of computer algorithms and humans. You can choose from limited services with minimal support from human financial planners to extended services offering a team of financial planners extensively working on your investment portfolio.

Traditional Advisors

From registered wealth advisors to stockbrokers and financial planners, you still have the option to choose human advisors. If you have a complex financial situation, you might need the services of a person to get your complicated investment problems solved immediately. However, human financial planners are typically the highest-cost option, and you will find many of the very best only work with high-net-worth individuals. In many cases, you will need assets totaling $250,000 or more.

To help find the right financial advisor, you can ask friends or family for referrals, or you can search for companies on Google. If you know anyone who was or is in a similar financial situation as you, it would be smart to ask who they may have consulted about their finances.